Bullish Brokerage Note Sends GM Up to Three-Year Highs

By Emma Gilkey / September 21, 2017 / www.schaeffersresearch.com / Article Link

Analysts are weighing in on financial software company Intuit Inc. (NASDAQ:INTU), automotive concern General Motors Company (NYSE:GM), and semiconductor specialist Texas Instruments Incorporated (NASDAQ:TXN). Here's a quick roundup of today's bullish brokerage notes on shares of INTU, GM, and TXN.

Wells Fargo Sees New Highs for INTU Stock

Wells Fargo upgraded INTU stock to "outperform," and raised its price target to $163 from $110. The QuickBooks parent is trading up just 0.1% at $145.13 at last check, hovering below Tuesday's new record high of $146.04. Year-over-year, INTU has advanced 31%.

Options players are also optimistic. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), INTU carries a 50-day call/put volume ratio of 3.13, which ranks in the 82nd percentile of its annual range -- suggesting calls have been bought to open at a faster-than-usual clip relative to puts.

GM Breaks Out After Bullish Nod from Morgan Stanley

Morgan Stanley raised its GM price target to $43 from $40 early this morning, and the stock is currently trading up 0.4% at $39.05. GM earlier touched an intraday peak of $39.24, marking its highest price since January 2014.

The automotive stock's breakout to new highs could spook some of the short sellers who have recently placed bets against GM. Short interest ramped up by 17.6% over the past two reporting periods, and the current accumulation of shorted shares represents six times GM's average daily trading volume.

TXN Extends 80-Day Bounce

BMO raised its price target on TXN to $105 from $92, sending the stock up 0.4% to $86.19. TXN shares are fresh off another successful test of their 80-day moving average, having tagged a 17-year high of $87.24 as recently as Tuesday.

However, traders have been betting against the Apple supplier. Short interest ramped up by more than 11% over the past two reporting periods, with these bearish bets starting to accumulate again after dwindling to a multi-year low in mid-August.

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